(EnergyAsia, March 6 2013, Wednesday) — Manila Electric Co (Meralco) and its main shareholder, Hong Kong-listed First Pacific Co Ltd, have agreed to jointly pay S$660 million for a 70% stake in the GMR Energy (GMRE) power company in Singapore. (US$1=S$1.24).

The subsidiary of India’s GMR Group is developing an 800 MW combined cycle gas turbine (CCGT) power plant on Singapore’s Jurong Island. Petronas Power Sdn Bhd, a subsidiary of the Malaysian state oil and gas company, will continue to hold the plant’s other 30% stake.

Meralco, the Philippines’ largest power company, said the investment will represent its first power venture outside the country as it explores opportunities to expand in the region. The company and First Pacific have formed a joint venture, FPM Power, to buy out GMR Energy (Singapore) Pte Ltd’s share from GMR Infrastructure Ltd.

GMR said the sale, which gives the power plant an enterprise value of S$1,612 million, is subject to the approval of project lenders. The sale is expected to be completed later this month.

Featuring Siemens’ latest F-class gas turbines, the plant is being designed and constructed by a consortium comprising Siemens and Samsung, and due to start up sometime this year.

Yu Tat Ming, CEO of GMR Energy (Singapore) Pte Ltd, said: “We are very pleased to have a company of FPMP’s standing to be our shareholder. It is a vote of confidence in our state-of-the-art power project.

“There will be no changes to our operations in Singapore and we look forward to providing a high level of service and reliable power at competitive prices to our customers in Singapore.”

GMR Group is a Bangalore-headquartered global infrastructure company with interests in developing energy, highway, airport and urban Infrastructure.